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Canoo furloughs workers and idles factory as it scrapes for cash
Struggling EV startup Canoo has announced that it will be furloughing 82 employees and idling its factory in Oklahoma while the company scrambles to secure emergency funding. This development comes just a few days after board member James Chen resigned, and roughly one month after the departure of both the chief financial officer and head lawyer.
The move is the latest in a string of poor decisions that have plagued the startup throughout 2024. The company claims it is currently engaged in “advanced discussions with various capital sources” to raise the necessary funds to stay afloat.
Canoo’s new furloughs mark what has been a tumultuous year for the startup. Multiple rounds of layoffs and furloughs, coupled with the closure of its Los Angeles headquarters, have led to significant changes within the organization.
In a statement that failed to provide any specific details, Canoo expressed regret over having to let go of employees “especially during the holidays.” However, it emphasized that this decision was unavoidable at present. Canoo CEO Tony Aquila did not respond to requests for further comment on the matter.
Canoo has received significant financial backing from its CEO’s venture firm in order to remain operational thus far. It remains unclear what production levels were being reached at the Oklahoma facility before operations were paused.
The company had previously delivered electric vans to a range of prominent clients, including NASA, USPS, Walmart, and the Department of Defense for testing purposes. However, it has consistently failed to fulfill its original goals of expanding into mass manufacturing for commercial customers.
Source: techcrunch.com
